Erection Considerations

 

It is seen that if proper erection sequence and methodology is not followed, it may result in time and cost overrun, duplication of jobs, dismantling & re-erection, accidents, loss of life and property. Therefore, this is also one of the main basic consideration which every engineer/entrepreneur must be aware of. The following erection considerations  shall be taken into account

 

1.      Erection Sequence

2.      Erection Methodology

3.      Special Requirements/OD consignment, Before building roof erection,

4.      Minimizing Erection Time. In situ erection (THF Example)

5.      Temp Protection Requirements

6.      Erection of Cranes-Tower Cranes, Jib Cranes, Hydra,

7.      Batching Plants-Capacity & Number

8.      Alignment, lining, levelling & grouting

9.      Inserts Placements (Requirement to be checked at design stage)

10.  Rate of RCC per day, per Month

11.  Rate of fabrication per month at site t/month

12.  Rate of Structural erection per month

13.  Rate of Mechanical/equipment erection per month

14.  Rate of Refractories erection per month

15.  Rate of electrical erection cables, equipment, MCC.

16.  Rate of Instrumentation

17.  Rate of Piping erection

18.  Water requirement Peak &Average

19.  Temporary Power requirement Peak &Average

20.  Manpower requirements

21.  Interfacing with other units

22.  Welding requirements

23.  Space requirements-Fabrication, storage and temp assembly.

24.  Safety considerations in erection/construction/Safety Manager

 

It is now-a-days mandatory to appoint a Safety Manager at site for safety compliance.

  Implementation /Project Management Considerations

GENERAL

            It is necessary to have the basic knowledge of project management for the smooth implementation of the project. An engineer must be able to identify major activities involved in the implementing of the project and estimate average completion time for each of the activities. This will enable him to estimate desired rates of construction work and proposed time schedule for completion of project.  However, if required expert help may be taken for detailed micro-planning, monitoring and, control during construction stage

 

            Volume of Work

 

            An engineer must be well conversant with estimation of volume of work involved for the proposed project. Basically, these estimation of Concrete Work (RCC& PCC) in m3, Fabrication and Erection of Steel work (Building and Technological Structures) in tonnes, Erection of Plant & Equipment in tonnes, Refractories Erection in t, Electrical Work

            STEPS FOR PROJECT IMPLEMENTATION

            Environmental Clearance

The environmental clearance (if required) is the first requirement for initiating the project as per notification dated 14^th Sept 2006 of the Ministry of Environment and Forests (MOEF).

            Project Implementation                   

            For the project to be commissioned within schedule, the following advance actions have to be initiated by Project Authority to meet the proposed schedule.

Ø    Financial tie-up

Ø    Finalization of modus-operandi for project

Ø    EMP/EIA & approval from environmental ministry of State/Center (If required)

Ø    Clearance from local statutory authorities

Ø    Leveling, Cutting & Filling.

Ø    Selection of Technology Supplier 

Ø    Appointment of Technical Consultants

Ø    Appointments of contractors for civil, structural, mechanical electrical work

Ø    Quality Control set up for construction work

Ø    Planning for enabling works, like construction water lines, power lines and sewerage, labor camps, communication facilities

Ø    Planning for construction materials like cement, aggregates, steel etc., wherever needed

Ø    Planning for construction manpower

Ø    Planning and organizing structural steel availability, wherever needed.

 

Enabling facilities at site include construction of temporary offices, open and covered storage, fabrication yard, temporary firefighting system, construction water and construction power facility, developing temporary drainage facility etc.

 

The above activities consume very little capital expenditure but will help in the smooth progress of project activities as per the proposed schedule.  These activities can be taken up 2-3 months prior to zero date.

 

After above zero activities the following activities are taken up in sequence or in parallel

 

Ø  Basic Engineering

Ø  Preparation and Issue of Tender Specification for procurement of plant & Equipment

Ø  Scrutiny of tenders and placement of orders for Main & Auxiliary Plants. (Orders for Long lead items to be placed earliest)

Ø  Preparation and issue of excavation plan, Civil Engineering Drawings for building.

Ø  Site Preparation for starting civil & steel fabrication work

Ø  Preparation and issue of Structural Design and fabrication Drawings.

Ø  Civil Construction Work

Ø  Receipt of load data for equipment Foundation

Ø  Issue of civil foundation drawings for equipment

Ø  Fabrication of Steel Structures

Ø  Erection of Steel Structures

Ø  Issue of erection drawings for equipment

Ø  Issue of electrical installation drawings

Ø  Inspection & supply of equipment at site

Ø  Erection of mechanical equipment

Ø  Supply and Erection of electrical equipment, instrumentation and cable laying work

Ø  Cold start for auxiliaries and main equipment

Ø  Testing, trial run and commissioning

 

The work execution at site to great extent is dependent on the availability of site infrastructure like water, electric power etc.  It is assumed that these facilities will be developed in time to meet the requirement of site works as per schedule.

The timely completion of the project also depends on the association of proven construction agencies in the similar field, who can mobilize requisite resources of men, materials and construction machinery as well as construction and erection expertise to execute the above project.

            An engineer must have basic knowledge of Bar Charts, CPM/PERT Network (Master Network L1, L2, L3 types) for project monitoring and controlling time and cost overrun.

          Ergonomics

Every engineer and entrepreneur must have a basic understanding of Ergonomics principles It is the scientific discipline concerned with the understanding of interactions among humans and other elements of a system in order to optimize human well-being and overall system performance. Ergonomics is the science of making things simple, comfortable and efficient

If a plant or machine is simple to operate, it will be more acceptable.

Comfort in the human-machine interface and the mental aspects of the product or service is a primary ergonomic design concern.

The utility of an item is the only true measure of the quality of its design. Making an item intuitive and comfortable to use will ensure its success in the marketplace. Physical comfort while using an item increases its utility.

Better ergonomics mean better quality. Efficiency is quite simply making something easier to do. Efficiency comes in many forms. Following are the prime ergonomic considerations:

1.      Reducing the strength required to operate makes a process more physically efficient.

2.      Reducing the number of steps in a task makes it quicker (i.e. efficient) to complete.

3.      Reducing the number of parts makes repairs more efficient.

4.      Reducing the amount of training needed, i.e. making it more intuitive, gives you a larger number of people who are qualified to perform the task.

5.      If something is easier to do you are more likely to do it. If you do it more, then it is more useful. Again, utility is the only true measure of the quality of a design.

  Transportation Logistics

      An engineer should have knowledge of transportation logistics to understand the economics of transport of material within and outside plant. Whereas for longer distances Rail, Ship Inland Water Ways and Pipe Line transport are cheaper, for shorter distances Road, Conveyor, Aerial Ropeway, Pneumatic Transport may be cheaper. The manta is that total tonne-km cost must be minimum.

Similarly, before ordering an engineer must have the knowledge of overall dimensions and size of equipment (OD Dimensions) so that the same can be freely transported to site by rail or road without any obstruction/hinderance on the way.

Similarly, due attention shall be paid to packaging considering the nature of material, and equipment with respect to damage due to breakage, humidity, self-ignition, loss due to evaporation, pilferage, hazardous nature of substance, parts identification etc.,

Following considerations shall be of concern to engineer while considering transportation of goods to and from site.

 Ø  Ship/Rail/Road/air/Conveyor Transport/Pipeline Transport/Aerial Ropeways/Pneumatic Transport/In land Water Transport

Ø  OD Size of consignment

Ø  Packaging

Ø  Container or Loose

Ø  Special requirements-Special Bogie, Trailer

Normal, Commissioning & Insurance Spares

                It is another area which need attention by engineer/entrepreneur. Following aspects shall be                   considered during setting up of any plant or ordering any equipment

Spare part for two Years Normal Operation shall be considered.  Operational spare parts are those required for normal operation and day-to-day maintenance in the two-year period, following the initial operation period. Typical examples include First Pinion Shafts, bearings, Pulleys, Limit Switches, Fixed & Moving Contacts, steam traps, valves, pumps, fuses, control buttons, brake linings, shoes, brake drums, indicating lamps etc.

Commissioning spare parts are to enable uninterrupted installation and start-up of the plant and equipment in the commissioning stage.

 

All spare parts and consumables required for Construction, Pre-Commissioning, and Commissioning shall be identified and ordered

 

Commissioning Spares include such things as would be required for testing, vibration testing and hot alignment and are normally supplied as a part of the main equipment. Parts included would be bearings and seals for major rotating equipment, spools, seals, gaskets, contacts, shims, o rings, relays, paper rolls, Power contacts, coils,

 

Insurance spare parts are those parts of equipment, equipment assemblies or complete items of equipment that are required for replacement of items not subject to deterioration by normal use, but failure of which is critical for continued and safe operation of equipment or plant.

 

Insurance Spares:An insurance items is a spare part that will be used to replace a failed identical part in an operating equipment whose penalty cost for downtime is very high. Hence, by definition, it is an insurance against such failures for which the down time costs are very high. They do not become obsolete until the parent equipment is retired from service no matter if they do not move for many years

 

These are parts or assemblies that are quoted, evaluated and purchased along with the original equipment because of cost factors, engineering, fabrication, testing and fitting requirements, long delivery problems or are specified by Client. Usually one of a kind assembly such as rotor assemblies, reduction gear sets, special forgings, castings etc.

 

Financial Management

Engineer shall have knowledge to enable him to carry out Estimation of capital cost of Project, Working capital, margin money, Interest during construction, term loan interest, Cost of Raw materials, Energy, Utilities, power, water, fuel, consumables, manpower cost, repair and maintenance costs, production cost, Sales realization, profit & loss statements, payback period, internal rate of return, Debt Service Coverage Ratio, Break Even Point.

            Capital Cost

            This is often overlooked area. Estimation of capital cost, cost of capital, interest rates, duration                 of  payment are the factors to be considered by engineer/entrepreneurs.

            It is essential to have the basic knowledge as under:

Capital costs are fixed, one-time expenditure incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. Put simply, it is the total cost needed to bring a project to a commercially operable status.

Capital costs include expenses for tangible goods such as the purchase of plants and machinery, as well as expenses for intangibles assets such as trademarks and software development, know how fees, Basic engineering, detailed engineering, inspection, testing commissioning and  Performance Guarantee tests.

Capital costs are one-time expenses but payment may be spread out over many years in financial reports and tax returns. Capital costs are fixed and are therefore independent of the level of output.

For example, a thermal power plant's capital costs include the following:

·         Purchase of the land upon which the plant is built

·         Permits and legal costs

·         Costs involving the construction of the plant

·         Equipment needed to run the plant

·         Financing and commissioning the plant (prior to commercial operation)

They do not include the cost of the natural gas, fuel oil or coal used once the plant enters commercial operation or any taxes on the electricity that is produced. They also do not include the labor used to run the plant or the labor and supplies needed for maintenance.

There are various ways to calculate the capital cost. These are

1.      From the budgetary offers.

2.      From historical costs.

3.      From similar cost of recently constructed plants

4.      From detailed estimation

5.      By indexing

6.      By adopting Novel Method (Percentage Cost Method)

7.      By relative cost index method

Methods from S No 1 to 5 are common but the method at S Nos 6 & 7 are new and developed by author over a period spanning 50 years to Technical Consultancy Practice.

Percentage Cost method is based on the analysis of historical data of similar plants. It is discovered that cost of various activities for a similar plant fall within percentage of total cost of Mechanical Equipment. For example, in case of Sinter Plant the break up cost of various activities is given as under considering 100 as the basic unit for mechanical equipment